Landing on the cover of Barron’s can be a scary thing.Last week, Facebook got a bearish cover story, and on the next trading day the stock sunk.
This week, its Goldman Sachs’ turn. Fortunately for them, the article is bullish.
From Barron’s Michael Santoli:
Granted, all major bank stocks trade below book, and none would be immune to another financial scare. But the negative perception of Goldman is far more dour than the reality justifies. The company maintains an abiding leadership position in most of its activities, and is financially sturdier and less burdened by irrational competition than it was a half-decade ago. Based on the likely outlook for capital-markets activity and Goldman’s ability to continue growing its book value, it is easy to conclude that the shares could rise at least 25% within a year.
Santoli notes that analyst Mike Mayo, a famous sceptic of banks, recently upgraded Goldman to a buy and slapped a $142 price target on the stock. Goldman closed at $113 on Friday.
Read the whole feature at Barrons.com.
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